Gold Price Futures (GC) Technical Analysis – Selling Pressure Drives Gold into Two-Week Trading RangeBased on the early price action and the current price at $1495.40, the key level to watch into the close on Monday is the downtrending Gann angle at $1495.30.
Gold futures are under pressure late Monday as a surge in demand for risky assets helped dampen its appeal as a safe-haven asset. The catalysts behind the price drop are strong earnings, rising Treasury yields and increasing hope of a trade deal announcement this week.
Although the U.S. Federal Reserve is expected to cut its benchmark interest rate 25 basis points for a third time this year on Wednesday, there is growing concern that this may be the last cut of the year.
At 20:17 GMT, December Comex gold is trading $1495.40, down $9.90 or -0.66%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The main trend will change to up on a trade through $1522.30. A move through $1478.00 will indicate the selling pressure is getting stronger, while a trade through $1465.00 will signal a resumption of the downtrend.
On the downside, the major support zone is $1489.10 to $1471.00. This zone stopped the selling at $1478.00 on October 11.
On the upside, potential resistance is a short-term 50% level at $1504.20 and another 50% level at $1515.60.
Daily Technical Forecast
Based on the early price action and the current price at $1495.40, the key level to watch into the close on Monday is the downtrending Gann angle at $1495.30.
A sustained move under $1495.30 will indicate the presence of sellers. This could trigger a break into a support cluster at $1490.20 to $1489.10.
If $1489.10 fails as support then look for the selling to possibly extend into an uptrending Gann angle at $1484.00.
A sustained move over $1495.30 will signal the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into a potential resistance cluster at $1503.00 to $1504.20.